Overview

The majority of American workers view health care benefits as one of their basic needs. You are continually looking for ways to balance rising health care costs and employees' expectations.

A Section 105: Health Reimbursement Account Plan is an arrangement where the employer reimburses an employee for health expenses not covered by the group health insurance plan -- deductibles or co-insurance amounts, for example.

Advantages for your credit union:

• Greater flexibility in benefits design.
• This plan allows the employer to purchase a less expensive health plan.
• Although savings are not guaranteed and are dependent upon actual claims incurred, employers typically enjoy significant savings because reimbursements are likely to be lower than premiums.

Advantages for your employees:

• More control and flexibility of benefits choices.

• Reimbursements are tax-free to employees.